Financial Results for Year Ended 31 December 2018

02 April 2019

This announcement contains information which, prior to its disclosure, was considered inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 (MAR).

Eden Research plc (AIM: EDEN), the AIM listed company that provides breakthrough natural microencapsulation technologies to the global agrochemicals, animal health and consumer products industries, announces its preliminary results for the year ended 31 December 2018.

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Financial highlights:

Revenue of £2.8m (2017: £1.9m)
Operating loss of £0.5m (2017: £0.8m)
Loss before tax of £0.5m (2017: £0.8m)
Loss per share of 0.16p (2017: 0.33p)
Net cash of £2.5m (2017: £3.7m)
Operating profit, before non-cash items (share-based payment charge and amortisation), and one-time items (licence renewal fee and royalties refund) of £0.02m (2017: loss £0.4m)
Product sales increased 112% to £1.6m (2017: £0.8m)
Upfront and milestone payments of £1.2m (2017: £1.1m)

Commercial highlights:

Multiple distribution agreements signed with Sipcam SpA (“Sipcam”) for Mevalone in ten new territories, for which a fee of €0.9m (£0.8m) was paid to Eden
Exclusive distribution agreement signed with Sipcam for its fungicide product Novellus to be sold in Australia and New Zealand
Successful positioning of Mevalone as an early-season treatment contributing to product sales growth of 112%
A healthy pipeline of collaborations progressing with majors in Eden’s distributor network

Operational highlights:

Lykele van der Broek, former COO of Bayer Crop Science and former Head of the Animal Health division of Bayer Health Care, appointed as Chairman with effect from 1 January 2018
Regulatory applications submitted in new countries for Mevalone and Cedroz, including the US which is currently undergoing scientific review by the United States Environmental Protection Agency (“EPA”)
Regulatory clearance received for head lice treatment product by TerpeneTech to be sold in the European Economic Area

Lykele van der Broek, Chairman commented: “We have undergone a year of significant growth at Eden in 2018, with a boost to revenue from product sales and the contribution of Sipcam SpA exercising it’s option for new distribution agreements in ten additional territories.

“Behind the scenes, significant regulatory activity has been progressing with promising potential to unlock future product sales expansion for the business. The Board is currently prioritising the long-term viability and growth potential of the Company and is looking forward to making further commercial progress in 2019.”

For further information contact:

Eden Research plc	www.edenresearch.com
Sean Smith	Tel: 01285 359 555
Alex Abrey

Shore Capital (Nomad)
Stephane Auton/Patrick Castle	Tel: 020 7408 4090

Powerscourt (Financial PR)	eden@powerscourt-group.com
Nick Dibden/Jana Tsiligiannis	Tel: 020 7250 1446

Notes:

Eden Research is a technology development and commercialisation company with intellectual property and expertise in encapsulation, terpenes and environmentally friendly technologies to provide naturally occurring solutions for the global agrochemicals, animal health, and consumer product industries.

Eden's encapsulation technology harnesses the biocidal efficacy of naturally occurring chemicals produced by plants (terpenes) and can also be used with both natural and synthetic compounds to enhance their performance and ease-of-use. The technology uses yeast cells that are a by-product of numerous commercial production processes to deliver a slow release of natural compounds for agricultural and non-agricultural uses. Terpenes are already widely used in the food flavouring, cosmetics and pharmaceutical industries.

Historically, terpenes have had limited commercial use in the agrochemical sector due to their volatility, phytotoxicity and poor solubility. Eden's platform encapsulation technology provides a unique, environmentally friendly solution to these problems and enables terpenes to be used as effective, low-risk agrochemicals.

Eden is developing these technologies through innovative research and a series of commercial production, marketing and distribution partnerships.

The Company has a number of patents and a pipeline of products at differing stages of development targeting specific areas of the global agrochemicals industry. To date, the Company has invested in the region of £13m in developing and protecting its intellectual property and seeking regulatory approval for products that rely upon the Company's technologies. Revenues earned by the Company to date have been modest whilst the Company has concentrated on securing patent protection for its intellectual property, gaining regulatory approvals, identifying suitable industrial partners, and entering into commercial agreements.

In May 2013, the three actives that comprise Eden's first commercial product, 3AEY, were approved as new ingredients for use in plant protection products. This represented a major milestone in the commercialisation of Eden's technology and is a significant accomplishment for any company. To illustrate this point, it should be noted that in all of 2013 Eden's approvals represented 3 of only 10 new active ingredients approved by the EC.

3AEY has been authorised for sale in Kenya, Malta, Greece, Bulgaria, Spain, Italy, France, Cyprus, Albania, Portugal and the Republic of Macedonia.

Eden was admitted to trading on AIM on 11 May 2012 and trades under the symbol EDEN.

For more information about Eden, please visit: www.edenresearch.com.

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